A leading insurance provider wanted to improve the operational efficiencies and accuracy of actuarial reporting, while meeting tight timelines and reducing operational costs
The WNS team delivered business-critical services in major functional areas of actuarial reporting, including data validation, basis modification, model development and analysis of results
The client was able to reposition high-cost actuarial staff to more strategic initiatives. A standardized approach for reporting resulted in more accurate insights
The client is one of the world's leading insurance companies. In 2007, the client embarked on a journey to transform its actuarial function. The objective was to improve the operational efficiencies and accuracy of actuarial reporting, while meeting tight timelines and reducing operational costs.
After a rigorous due diligence, which involved significant knowledge-related assessment, the client chose to partner with WNS to enhance its actuarial reporting capabilities.
The WNS team delivered business-critical services in major functional areas of actuarial reporting, including data validation, basis modification, model development and analysis of results. The scope of services includes supporting IFRS / MCEV / RBS / ICA reporting, experience analysis and new business reporting.
Data validation: The team validates the month-end Model Point Files (MPF), which are used for reporting and experience analysis. The data is validated using trend analysis, ratio analysis, on / off movement analysis and reconciliation of key variables. The validation process has been automated to manage 6,000+ MPFs in a timely and consistent manner on a monthly basis.
Basis modification: The team delivers the modified basis tables for IFRS / MCEV / RBS / ICA reporting resulting from the changes occurred during half-year, trial year-end and year-end. Almost 1,500 sets of basis are produced during key reporting periods, which are checked and validated with a combination of automatic and manual controls.
Model development: The team designs and develops models in a Prophet environment for various purposes, including pricing, valuation, cash flow testing, Asset Liability Modeling (ALM), Solvency II / risk management (including, credit risk, market risk, insurance risk and operational risk), stochastic modeling (including time value of options and guarantees, policyholder behavior and investment return) and experience analysis.
Analysis of results: The team ensures the accuracy of results by validating the consistency between data, basis and models. It analyzes the impact of changes of various assumptions on the key variables, including present value of future profit, margins, asset share and cost of guarantees, and reconciles the results with the previous valuation period.
Detailed documentation of process maps and procedures for standardization and better knowledge management
Staffing the team with high-quality talent comprising statisticians and personnel with actuarial background
Implementing tools to ensure faster and more accurate validation of model point files and basis tables
Strong focus on learning, which includes a one-month pre-process training, followed by another two months of on-the-job training.
WNS has also instituted a continuous learning program to ensure that the team is abreast of the latest developments in the process, insurance industry and actuarial sciences.
Onshore actuarial staff re-focused on strategic initiatives: With the WNS team delivering a large part of the reporting requirements, the high-cost actuarial staff of the client re-positioned to focus on more strategic initiatives within the client organization
Increased the number of checks and controls for data and basis validation while meeting the tight timelines of report submission
Timely submission of detailed audit packs for internal and external audits
Right mix of actuarial and statistical skills for cost optimization
Standardized approach to reporting was established resulting in more accurate insights being generated
Greater flexibility in generating ad hoc reports for compliance purposes
WNS is a leading global business process outsourcing company. Deep industry and business process knowledge, a partnership approach, comprehensive service offering and a proven track record enables WNS to deliver business value to the world’s leading companies. WNS is passionate about building a market leading company valued by our clients, employees, business partners, investors and communities
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29 June 2022
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